What a tremendous week this has been (and, again, we’ve still got a trading day left). I think I haven’t enjoyed markets this much since last December.
Until recently, we had to endure a market that was either talking about “trade talk optimism” (surge to record highs) or wasn’t (steady and flat). Now we’ve exchanged that for “trade war tensions” (hard plunge) or lack of news (steady and flat).
Of course, old habits die hard, and “investors” have become all too accustomed to being saved at any sign of trouble, much like a three-year old with helicopter parents. Thus, after eleven years of mollycoddling, those who didn’t like the sting of a small downturn quickly got assurances from the government this week that it was all going to be fine, and easing would be provided if necessary. As our patron saint George Carlin called it, “the Great American Okey-Doke.”
As if stands now, the bulls have in their favor the fact they were able to push the ES above the psychologically-important 2900 level. We remain above it, in spite of a little weakness since the regular session closed on Thursday. Simply stated, we need to get below 2900 again for some serious selling to renew. Until then, it’s a stalemate.